NASAA Requests Comments on Proposed Changes to the NASAA Registration Exemption for Investment Advisers to Private Funds Model Rule

NASAA seeks comments on the proposed amendments to the Model Rule to disqualify advisers from use of the private fund exemption if the adviser or its advisory affiliates are subject to an event that would disqualify an issuer under new Rule 506(d)(1) of SEC Regulation D; this paragraph on "bad actors" was added by the newly adopted JOBS Act rules. The amendments would include a transition from referring to Rule 262 to Rule 506 disqualification language in the Model Rule. NASAA believes that this proposed change will enhance investor protection and serve as a better set of disclosures for use in the Model Rule.

See: NASAA Public Comment Notice; NASAA Comment Announcement.
See also: Cadwalader Memorandum on the new JOBS Act Rules (see the discussion of "bad actors").